Spread betting
In the past it was only City whizz kids with instant access to real time market information that induldged in spread betting on companies and markets.
But like contracts for differences (CFDs), the popularity of spread betting has exploded, particularly with the advent of the internet.
That said, spread betting is a high risk means of punting on the stock market.
And be warned, the losses are horrendous if you get it badly wrong. With traditional fixed odds betting you might wander into a bookmakers and place a wager and - if your luck is anything like mine - you will lose your stake money.
Spread betting is completely different animal. Win and the upside is potentially unlimited.
Get it wrong and you're not so much left chasing your losses, rather they end up chasing you.
But there is also much to commend spread betting. Buying shares by traditional means is a one-way bet.
You are wagering on a share price rise. Spread betting allows you bet against an individual share, or indeed the entire market - as well as buy into its upside.
Spread betting allows you can wager on all manner of markets and events - from the gyrations of the FTSE 100 right through to the outcome of a cricket match.
In this section we will look at:
- Spread betting basics
- Buying
- Selling
- What happens when it all goes wrong
- Some useful spread betting terms